Category Archives: Economic Analysis

Cryptocurrencies and Hyperinflation

The biggest danger of the cryptocurrency bubble is not speculator losses but hyperinflation. As the value of virtual currencies increases and they gain acceptance in commerce, the danger of hyperinflation that will damage economies worldwide is also increasing.

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Why The Financial Media Is Wrong About The Rally In Gold

Gold rallied about 2% after the rate increase announcement yesterday. The financial media believes that this was a typical “buy the fact” reaction. They are wrong.

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US Companies Hoarding Overseas 70% of Quantitative Easing

US companies are hording more than $2.5 trillion in cash in overseas accounts. This is about 70% of the quantitative easing between 2008 and 2014.

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The Once-in-3-Billion-Year Treasury Move That is Not so Rare

I agree with most of what Jamie Dimon, the head of JPMorgan Chase & Co., said about the Treasury market recently but I disagree that the gyration in yields that occurred on October 15 of last year was an “unprecedented … Continue reading

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Baltic Dry Index Falls to a 28-Year Low

Due to an oversupply of vessels and slowing economic activity, the Baltic Dry Index fell to a 28-year low of 608 on Friday with the shipping industry facing tough times ahead.

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The Draghi Effect and the Overleveraged Funds

I have lost count of how many times Mr. Draghi has promised sovereign bond buying. But for now, all the ECB does is accepting sovereign bonds as collateral and has not printed money in exchange for paper. The reason is … Continue reading

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